Trump targets $50bn in China goods, vows more if needed

  • Trump targets $50bn in China goods, vows more if needed

Trump targets $50bn in China goods, vows more if needed

President Trump announced Friday that the United States will implement a 25% tariff on $50 billion of goods, and if China retaliates, the USA will strike back with more tariffs.

Beijing's tariffs on U.S. goods will start on July 6 - the same day as Trump's announced restrictions - and will apply to agricultural products as well as cars.

But Friday's announcement meant that "all the economic and trade achievements previously reached by the two parties will be invalid", the Chinese Commerce Ministry said.

Press officials at the U.S. Commerce Department and U.S. Trade Representative's office declined to comment on the tariff list plans.

He said some of the commodities his customers buy from China won't fall under the tariffs. Caterpillar Inc, another big exporter to China, ended 2 percent lower.

As part of President Donald Trump's trade agenda, the United States has launched another volley of tariffs - this time on China.

Chinese foreign ministry spokesman Geng Shuang said Friday that China's response would be immediate and that Beijing would "take necessary measures to defend our legitimate rights and interests".

Trump has pledged to enforce fair and reciprocal trading relations with China, with the US bilateral trade in goods deficit having reached $375 billion previous year, and amid long-running complaints of what foreign companies see as forced technology transfers and market restrictions.

Aircraft featured on the April list but were not on the revised list.

China says its tariffs mirror the American ones.

"It generally focuses on products from industrial sectors that contribute to or benefit from the "Made in China 2025" industrial policy, which include industries such as aerospace, information and communications technology, robotics, industrial machinery, new materials, and automobiles", USTR announced in a statement Friday. Companies wishing to import any affected products will soon have to apply for exclusions.

Most semiconductor devices imported from China use chips produced in the United States, with low-level assembly and testing work done in China, prompting the Semiconductor Industry Association to call the new tariff list "counterproductive". More on that soon. Trump shocked the world and fellow members of the G7 when he chose to impose tariffs on aluminium and steel on the US's closest neighbour, Canada, following a public spat with its prime minister Justin Trudeau, who also vowed to respond.

So far, companies with business in China have mostly kept low profiles, hoping the U.S. and China would strike a deal, according to Samm Sacks, a senior fellow in the Technology Policy Program at the Center for Strategic and International Studies.

In response, the Chinese government have promised to retaliate with similar tariffs. He has already threatened additional tariffs on US$100 billion of Chinese imports, but the list of products has not been finalised.

Interestingly, Trump proposed eliminating all tariffs and trade barriers among the G-7 nations. A further round of trade talks in Beijing earlier this month failed to yield any breakthroughs.

U.S. president Donald Trump has announced a 25% tariff on $50bn in Chinese imports.

Businesses in both countries, but especially the USA, are growing increasingly concerned that the dispute could escalate further and chill global economic growth. He said that China does not seek a trade war.

The announcements immediately sent businesses and industry groups scrambling to figure out if items in their supply chains would be targeted, and how higher costs from tariffs could affect their bottom lines. The country's Finance Ministry has announced it will issue import tariffs on 545 product categories. But he said that underlying strong economic fundamentals in the United States would dampen the market impact.

Trump's decision to impose fresh tariffs on China follows his recent imposition of steep tariffs on steel and aluminum imports from Canada, Mexico and the European Union on national security grounds.